This Veteran Thought He Paid for A Home. Now His Neighbors are Suing Him. [VIDEO]
Categories: News, Video
Danny Shedd has served as a Veteran for 12 years, and toured Iraq and Afghanistan in that time. After recently leaving the service, he and his wife decided to buy a property out in the country and settle down there.
The home they saw in Big Cabin, Oklahoma, with four bedrooms and a huge yard, was a match made in heaven for the couple and their growing family. Or so they thought.
After negotiations, inspections, appraisals, and a $172,425 payment in cash (the result of years of dedicated saving), they finally called the place their own. Once Shedd joined his family at the home, he soon noticed that the neighbors’ cows were coming onto his backyard and eating his grass. He called a surveyor to build a fence and keep the cows out. The surveyor came back with bad news.
Apparently, what they had actually paid for was 10 wooded acres of land, in a flood plain; a plot completely unusable for construction of a home. The deed didn’t list them as the owners of any home. Moreover, the house they were in wasn’t on the plot of land in the deed, but instead to the south of the land.
Essentially, the Shedd’s were living in a property they don’t have the rights to. And now the neighbors are trying to get them evicted, saying they own the home instead. And while, technically, they’re not wrong, the Shedd’s feel that an discrepancy in the deed shouldn’t keep them from the home that they paid for and expected to receive; especially since the home had previously been through foreclosure, and the error had not been found or resolved then.
According to a report from Vice, this problem is fairly common, and often overlooked:
The bizarre situation speaks to a potential time bomb lurking behind an untold number of US residential mortgages. During the housing bubble that went bust in 2007 and 2008, mortgage companies routinely ignored longstanding property records laws. So defects—whether due to inaccurate deeds or fraudulent transfer documents—have sown chaos in county recording offices and foreclosure courts. These defects create ruptures in the “chain of title,” confusing who holds true ownership over properties.
Although the Shedd’s have fought tooth and nail to keep the home that they thought they purchased, they’ve received very little help. Their title insurer told them, in so many words, “Not our problem.” Their appeals have largely gone unanswered. Even Fannie Mae’s original offer to help eventually came with ridiculous strings attached. And when they refused to vacate the home, their neighbors lawyered up and have filed a suit against them, demanding an additional $20,000 on top of the house.
Shedd describes the ordeal in full on a Youtube video he posted September 1st:
If you want to help Shedd and his family, please share this video or our article. Hopefully, justice will be done for our service members.
I think you have a clear lawsuit against the realtor who listed the property and the realtor who showed you the property!
This should be fixed by the escrow company. It was their responsibility to ensure that the house, property and boundaries are all correct. Escrow usually has some form of insurance to deal with these issues.
My family and I recently found a home we love and started he process of buying with our VA loan. My wife and I are both veterans. We made an offer on the home that was accepted and then once all inspections and the VA appraisal was completed (showing the value as good), the VA is now turning us down because they said there isn’t any comparable s homes in the area that have as much square footage as our home. Excuse me, but why is the VA worried about me having the largest home in the area? Can anyone help with this?
1. You neglected to get a survey to ensure what you were buying BEFORE you bought it.
2. Sounds like you didn’t have anyone you were paying to look out for your interest.
3. I’ll guarantee that at least one of the ‘neighbors’ knows/knew the house is in the WRONG location and that is part of the reason it went into foreclosure the first time.
When buying real estate…it’s up to YOU to do your due diligence. No one will look out for your interests better than you. Hope you get it figured out.
What is the neighbors address?! That should be made public.
If he paid title search the insurance company is on the hook.
I don’t know OK real estate law but I assume it’s pretty much the same everywhere. It is the title company’s problem. That is why he paid them to research the title. He also paid for title insurance I’m sure. If he used a REALTOR, they can be held liable also. He needs to contact his state board of REALTORS and get a referral for a good real estate attorney. Veteran or not, this is not only wrong, it is illegal! The appraiser could be held accountable too.
If you purchased title insurance during your transaction, which you should always do, then the title insurance would make this transaction right. They can always sue the broker that the bought the house through.
PURE KIKERY
This is probably the worst real estate mix – up I have ever heard about in my 15 years in the real estate and the mortgage business. What makes it even more upsetting is the fact that you paid with cash for the property. Had you taken out a mortgage on this property, the mortgage company would have required a survey and an appraisal so they would have caught the title legal description defect and they would not have allowed you to settle deal. But since you had paid with cash they let you settle. What is disturbing and out right wrong and unprofessional is that your real estate agent and title company allowed this to occur. Your licensed real estate agent should have known this and your title company is also at fault here. You definitely have to follow legal action against the real estate company and your real estate agent, who sold you this property and misled you in the process. And go to the real estate commission in your state and describe what happened to you and report the agent for selling you the wrong parcel.
Move the home to the land you bought, piece by piece. It is your home it’s the land in dispute. A wooded flood plan even if it is swamp land you can build on it.
Don’t forget to sue the closing attorney as well. He was supposed to ensure the title deed was free and clear, that is what the plot plan is for in the closing documents.
Call the local news and get it on tv
Two issues I see – no pre purchase survey – but depending on what the “sellers” told you you can sue for fraud.
The title insurance company will get owned for this…They should be ok. There is also a pretty good chance they could get more than just the value the invested (Given anguish and suffering) Not sure of Oklahoma statute but it looks like a slam dunk to me.
All states have different laws. Some require a survey and some don’t. The tax parcel number should have matched through appraisal, title, deed, etc.. you pay for title insurance and the title insurer should have pulled the tax parcel number… taxes on vacant land are not the same as improved land. The description of improvements in the record should be different. Who ever sold this land committed fraud – they did not convey what they had under contract. The title Co needs to settle if you purchased title insurance and then go after the seller for fraud.
Did they sign a contract for that deed? It sounds like they signed a contract for that deed. Didn’t they think it was odd the deed to their property didn’t say anything about a 4-bedroom house? It sounds like they didn’t think it was odd the deed to their property didn’t say anything about a 4-bedroom house.
I would get your self a va loan and refi the cash out for 100% so you get your money back go buy another house with the cash and let them repo that mess before you get buried in legal fees it will cost you 700 to file bankruptcy just put the new property in someone else’s name but I doubt you would have to file hope you get a good appraisal to get what you paid for